The risk-free rate is 5 and the expected rate of return on


The risk-free rate is 5% and the expected rate of return on the market portfolio is 12%.

a. Calculate the required rate of return on a security with a beta of 1.35.

Required Return: ________ %

(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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Financial Management: The risk-free rate is 5 and the expected rate of return on
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